What is DigitalDevelopersFund

DDF was established in 2010 as “Domain Developers Fund” and had a solid track record in domain investing. To expand, they held an ICO to add crypto currencies and other digital assets to their portfolio.

Domain names are still the main part of their portfolio. And it seems attention have shifted since early 2018 to Hydrominer, another project of the founder Michael Marcovici

The fund had two type of investors, orignial shareholders (68,8093%)and tokenized ICO investors (31,1906%)

50% of all profit is ddistributed as dividend to the investors on a quarletly basis if the fund exceeds the high watermark from the previous payment.

2% goes to admin fees, en there is a performansce fee depening on the performance
• 0-5% net profit: 0 % performance fee
• 5-10% net profit: 5% performance fee
• 10-15% net profit: 12% performance fee
• > 15% net profit:15% performance fee
• The remainder (at least 35%) is reinvested.

Would you have done better investing in the big crypto coins instead of buying DDF?
Table below gives an overview if you had the choice to invest $1000 at the ICO ending or any given day.

2019-04-25 2019-04-25 What to think about DDF…. Well where to begin!

Lets start with the lack of communication lately. The monthly reports came monthly till August 2018 after more or less the only reply from Michael in the chat “ We had a delay” “ Working on it “ and more of the same. I think Michael moved on to Hydrominer and buys or sells a domain every now and then. Hardly any crypto holdings and trading, but the Asset manager Davies Guttman has left the company long ago. According to his Linked in https://www.linkedin.com/in/davies-guttmann-15a20413/ 2013 – 2017 Drop Catching and Asset Manager Digital Developers Fund and now he is the CFO of… Hydrominer

Michael his linked in page https://www.linkedin.com/in/michael-marcovici-aa963614/ “Starting in 2013 Michael became active in the cryptocurrency space, he is currently advising various companies in this space and is the co CEO of Hyrominer, a crypto mining company in Austria.” DDF is not even mentioned (anymore). Both had not posted on their facebook for over a year.

The lack of communication are proof of life is also well visible on the DDF website. Last post was a week after the ICO… August 2017!

What about the numbers? It must be rounding I hope. The only dividend every (see newsletter 2018-01-03) started with $4,663,317 and ended $5,165,032. A profit of $501,715. With 29.46% share for the token holders one would say = $147,805.239, but the report mentioned $147,761
Report mentioned $0.01537 dividend per token with 50% of $147.761 this results in 73,880.50 / 0.01537 = 4806798,959011061 tokens

But total supply 6,428,932.126963297278548 – 1,625,000 (tokens in asset allocation) = 4803932,126963297278548 tokens.

I so hate it when the math is not correct.

Also the math does not match with the stolen tokens (from Cryptopia hack) and the new mentioned supply (report 2019-02-27) total supply – the stolen ones 750223.13042319 = 4,053,708.996540107 but the report mentioned 4,053,932.

Another math question. The fund had a $501,715 profit ($5,165,032 – $4,663,317) Half of it goes to dividend, from the remainder 2% admin fee and 5% performance fee and rest should be reinvestment. You would think this leaves a $4,896,614.475 fund but in the next quarterly report they come up with “ $4.404.736 USD Total after dividend/redemption payment of Jan 2018”. Not that is does matter for some strange reason the fund needs to exceed $5,165,032 instead of a logical $4,896,614.475 (or 4.4M in their view) before we ever receive dividend again. You have to set the high watermark at the start point of the next quarter not at the endpoint of a profitable quarter. Hmmm and also that high watermark changed to $5,027,541 in May 2018???

And is we take a close look at the asset allocation.
1028 domain names valued at $3,080,320 not sure if we should read this as bought for, but the domain names are 80.22 % of the entire asset allocation. Even in a crypto bull run those domain names will not gain much more in value.

1,625,000 DDF tokens valued at $434,843 = $0.26759569230769230769230769230769 per token. That is one way to get your NAV a bit higher, but there is no one ever paying that with the current $0.00663804 market price. Still 11.32% of their balance. The funny thing, the only time those tokens where valued below 400K was in October 2017 exactly at the moment dividend was supposed to be paid. And all of the sudden in that report it has a total value of 309K???!!! resulting in a loss and no payment!!!!. With the “normal” value we would have seen a very small profit after the first quarter of running. Also the values $434,843 in the next quarter was also exactly right to have a 10%, just enoug to get a 5% performance fee.

67,500 Bitcoin Clean tokens are a great success. Once valued at over $50 a token now the entire stack is less than $3000 its trading only on Yobit and I have no idea if this is the updated chain. I do not trust Yobit! They still trade other tokens without updating the chain, making them impossible to withdraw or deposit.

Mining rigs for the full value at the balance sheet? Hardware is basically worthless the moment you buy it and even more true for mining rigs.

Basically the only tokens worth looking at are ETH and Coss. In a bull run those tokens could make a difference, the rest is a too small bag to make good profit. And we need at least 1.3 million from these assets before ever getting dividend again. But Coss should have been sold in its first run to above $3 . I’m not a trader, but I sold my Coss around that point simply because I could make more money selling at that time then I would have waiting 25 years in dividend. Bought back and sold again with a profit and bought back again at ico price.

By the way, Hydrominer is also such a great project with lots of progress. Already in January 2018 it was mentioned in the reports and ever since then its in a few weeks…. It still is and it is the same as in ddf… working on it …. Latest news from there was yesterday “Dear community, we will be back with news in a bit! The situation is clearing and we will be able to provide you with an overview soon. I can only repeat that it is always a matter of compliance to release an update when the situation is not completely resolved. As you know it took us one year to finally get the capital market prospectus, pausing the offer is not an easy decision and we need to get all things clear before we can proceed.”